Egypt cuts gas supplies to fertilizer makers by another 33%

what happened

Egyptian fertilizer producers have been notified of a new 33% reduction in natural gas supplies, according to a statement from Misr Fertilizers Production and industry officials cited by Reuters. The move follows an earlier 20% cut. Authorities want to reduce reliance on expensive imported liquefied natural gas (LNG), which is used alongside domestic output to generate electricity.

Domestic production has not kept pace with rising demand, and tighter global LNG markets have pushed prices higher. The government is also buying more cheaper fuel oil: the state-run EGPC bought six cargoes of high-sulphur fuel oil for November and December delivery. LNG imports hit a year-to-date high in July before easing. The Petroleum Ministry did not immediately comment.

why it matters

For markets, the key point is that Egypt is trying to cut LNG purchases at high prices. The 2026/27 budget set aside about $10.1 billion for LNG, but $5.8 billion had been spent by October 6, and an analyst expects the budget to be overrun before the spring and summer demand peak.

market impact

LNG market: Egypt's reduced purchases slightly weaken demand for liquefied gas

• ▼LNG pressure down — Egyptian purchases are being cut because of high prices and tight domestic gas

tags

instruments